================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
----------
FORM 10-QSB
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1997.
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM _________ TO _______.
Commission file number: 1-12431
UNITY BANCORP, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
NEW JERSEY 22-3282551
------------------------------- ----------------
(State or other jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification)
64 OLD HIGHWAY 22, CLINTON, NEW JERSEY 08809
--------------------------------------- ----------
(Address of principal executive offices) (zip code)
(908)730-7630
----------------------------------------------------
(Registrant's telephone number, including area code)
----------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. YES X NO
--- ---
The number of shares outstanding of each of the registrant's classes of common
stock, as of May 12, 1997: Common Stock, No Par Value: 1,975,275 shares
outstanding.
Transitional Small Business Disclosure Format (check one): YES NO X
--- ---
================================================================================
<PAGE>
<TABLE>
PART I -- FINANCIAL INFORMATION
Item 1. Financial Statements
UNITY BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
March 31, December 31,
1997 1996
------------ ------------
(unaudited)
<S> <C> <C>
ASSETS
Cash and due from banks ...................................... $ 22,826,083 $ 15,848,021
Federal funds sold ........................................... 17,550,000 17,600,000
------------ ------------
Total cash and cash equivalents .................... 40,376,083 33,448,021
------------ ------------
Securities
Available for sale (at market value) ....................... 9,490,787 11,152,967
Held to maturity (aggregate market value
of $26,864,305 and $25,246,902) .......................... 27,801,759 25,999,907
------------ ------------
37,292,546 37,152,874
------------ ------------
Loans (including loans held for sale of
$1,507,516 and $2,041,650) ................................. 105,273,943 97,847,453
Less: Unearned income .................................... 24,665 19,544
Allowance for possible loan losses ................. 941,825 886,465
------------ ------------
Net loans .......................................... 104,307,453 96,941,444
------------ ------------
Premises and equipment, net .................................. 3,492,733 3,103,931
Accrued interest receivable .................................. 1,081,533 1,052,809
Other assets ................................................. 1,026,784 988,597
------------ ------------
TOTAL ASSETS ....................................... $187,577,132 $172,687,676
------------ ------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Demand
Noninterest Bearing ...................................... $ 33,830,350 $ 31,385,323
Interest bearing ......................................... 25,222,347 21,282,010
Savings .................................................... 26,876,355 24,976,839
Time (includes deposits $100,000 and
over of $14,263,000 and $13,801,000) ..................... 82,060,677 75,910,888
------------ ------------
Total deposits ..................................... 167,989,729 153,555,060
------------ ------------
Obligation under capital lease ............................... 356,265 380,275
Accrued interest payable ..................................... 645,376 533,695
Accrued expenses and other liabilities ....................... 410,054 228,645
------------ ------------
Total liabilities .................................. 169,401,424 154,697,675
------------ ------------
Commitments and contingencies Shareholders' Equity
Common stock, no par value, 2,500,000
shares authorized; 1,973,425 and
1,964,113 issued and outstanding ......................... 16,977,113 16,867,120
Retained earnings .......................................... 1,281,139 1,183,357
Net unrealized loss on available for sale securities ....... (82,544) (60,476)
------------ ------------
Total Shareholders' Equity ......................... 18,175,708 17,990,001
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ......... $187,577,132 $172,687,676
============ ============
The accompanying notes to consolidated financial statements
are an integral part of these statements.
</TABLE>
2
<PAGE>
UNITY BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
--------------------------
1997 1996
---------- ----------
<S> <C> <C>
Interest Income
Interest on loans .............................. $2,348,710 $1,617,092
Interest on Securities ......................... 696,642 683,837
Interest on Federal Funds Sold ................. 227,145 105,695
---------- ----------
Total interest income ...................... 3,272,497 2,406,624
---------- ----------
Interest expense ................................. 1,426,458 1,050,360
---------- ----------
Net interest income .............................. 1,846,039 1,356,264
---------- ----------
Provision for possible loan losses ............... 58,316 139,483
---------- ----------
Net interest income after provision
for possible loan losses ....................... 1,787,723 1,216,781
---------- ----------
Other income
Service charges on deposits .................... 162,970 85,224
Gain on sale of loans .......................... 270,061 252,378
Gain on sale of securities ..................... -- 31,850
Other income ................................... 131,397 68,060
---------- ----------
Total other income ......................... 564,428 437,512
---------- ----------
Other expenses
Salaries and employee benefits ................. 1,047,931 626,074
Occupancy expense .............................. 257,570 123,001
Other operating expenses ....................... 725,645 555,784
---------- ----------
Total other expenses ....................... 2,031,146 1,304,859
---------- ----------
Income before taxes .............................. 321,005 349,434
Provision for income taxes ....................... 124,553 135,762
---------- ----------
Net income ....................................... $ 196,452 $ 213,672
========== ==========
Net income per share ............................. $0.10 $0.17
===== =====
Weighted average shares outstanding .............. 1,972,238 1,283,966
</TABLE>
The accompanying notes to consolidated financial statements
are an integral part of these statements.
3
<PAGE>
<TABLE>
UNITY BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited)
<CAPTION>
For the three months
ended March 31,
-----------------------------
1997 1996
----------- -----------
<S> <C> <C>
Operating activities:
Net income ............................................................. $ 196,452 $ 213,672
Adjustments to reconcile net income to
net cash provided by (used in)
operating activities
Provision for possible loan losses ................................. 58,316 139,483
Depreciation and amortization ...................................... 137,009 58,037
Net gain on sale of securities ..................................... -- (31,851)
Gain on sale of loans .............................................. 270,061 252,378
Amortization of securities premiums, net ........................... 7,007 15,866
Deferred tax benefit ............................................... 14,712 58,683
Increase in accrued interest Receivable ............................ (28,724) (34,444)
Increase in other assets ........................................... (38,186) (238,730)
Increase (decrease) in accrued interest payable .................... 111,681 (12,070)
Increase (decrease) in accrued expenses and other liabilities ...... 153,949 (219,688)
----------- -----------
Net cash provided by operating activities .................... 882,277 201,336
----------- -----------
Investing activities:
Proceeds from sales of securities available for sale ................... -- 1,234,436
Purchases of securities held to maturity ............................... (3,997,188) (1,006,172)
Purchases of securities available for sale ............................. (154,700) (3,873,921)
Maturities and principal payments on securities
held to maturity ..................................................... 2,192,136 317,036
Maturities and principal payments on securities
available for sale ................................................... 1,776,291 4,007,632
Proceeds from sale of loans ............................................ 2,549,124 3,660,501
Net increase in loans .................................................. (10,243,510) (14,672,835)
Capital expenditures ................................................... (522,360) (635,229)
----------- -----------
Net cash used in investing activities ........................ (8,400,207) (10,968,552)
----------- -----------
Financing activities:
Increase in deposits ................................................... 14,434,670 8,038,733
Proceeds from issuance of common stock, net ............................ 109,993 7,917
Other .................................................................. -- --
Cash Dividends ......................................................... (98,671) (55,066)
----------- -----------
Net cash provided by financing activities .................... 14,445,992 7,991,584
----------- -----------
Increase (decrease) in cash and cash equivalents ......................... 6,928,062 (2,775,632)
Cash and cash equivalents at beginning of year ........................... 33,448,021 24,689,858
----------- -----------
Cash and cash equivalents at end of year ................................. $40,376,083 $21,914,226
=========== ===========
Supplemental disclosures:
Interest paid .......................................................... $ 1,291,116 $ 1,062,429
=========== ===========
Income taxes paid ...................................................... $ 75,000 $ 375,000
=========== ===========
The accompanying notes to consolidated financial statements
are an integral part of these statements.
</TABLE>
4
<PAGE>
UNITY BANCORP, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The accompanying consolidated financial statements of Unity Bancorp, Inc.
(the "Company") and its subsidiary, First Community Bank (the "Bank"),
reflect all adjustments and disclosures which are, in the opinion of
management, necessary for a fair presentation of interim results. The
financial information has been prepared in accordance with the Company's
customary accounting practices and has not been audited.
Certain information and footnote disclosures required under generally
accepted accounting principles have been condensed or omitted pursuant to
the SEC rules and regulations. These interim financial statements should be
read in conjunction with the Company's consolidated financial statements and
notes thereto for the year ended December 31, 1996.
The results of operations for the periods presented are not necessarily
indicative of the results to be expected for the year.
2. Securities:
Information with regard to the Company's securities portfolio at March 31,
1997 is as follows:
<TABLE>
<CAPTION>
March 1997
--------------------------------------------------------
Gross Gross Estimated
Amortized realized Unrealized Market
Cost Gains Losses Value
----------- ------- ----------- -----------
<S> <C> <C> <C> <C>
HELD TO MATURITY
Obligations of U.S. Government agencies ............. $ 7,037,142 $39,176 $ (18,633) $ 7,057,685
U.S.Government sponsored agencies ................... 12,006,236 0 (691,213) 11,315,023
Mortgage-backed securities .......................... 8,262,630 28,856 (299,759) 7,991,727
Corporate debt securities ........................... 495,751 4,119 -- 499,870
----------- ------- ----------- -----------
TOTAL HELD TO MATURITY .......................... $27,801,759 $72,151 $(1,009,605) $26,864,305
=========== ======= =========== ===========
AVAILABLE FOR SALE
U.S. Treasury securities ............................ $ 350,298 $ 360 $ -- $ 350,658
U.S. Government sponsored agencies .................. 5,966,326 1,972 (63,625) 5,904,673
Obligations of states and political subdivisions .... 602,750 390 -- 603,140
Mortgage-backed securities .......................... 96,604 17 -- 96,621
Corporate debt securities ........................... 2,017,387 1,165 (557) 2,017,995
FHLB stock .......................................... 517,700 0 -- 517,700
----------- ------- ----------- -----------
TOTAL AVAILABLE FOR SALE ........................ $ 9,551,065 $ 3,904 $ (64,182) $ 9,490,787
=========== ======= =========== ===========
</TABLE>
The amortized cost and estimated market value of securities at March 31,
1997, by contractual maturity, are shown below:
Estimated
Amortized Market
Cost Value
----------- -----------
HELD TO MATURITY
Due after 1 year -- 5 years ................ $ 5,739,172 $ 5,721,132
Due after 5 years -- 10 Years .............. 5,512,815 5,271,885
Due after 10 years ......................... 8,287,142 7,879,561
Mortgage-backed securities ................. 8,262,630 7,991,727
----------- -----------
$27,801,759 $26,864,305
=========== ===========
AVAILABLE FOR SALE
Due under 1 year ........................... $ 5,950,662 $ 5,953,993
Due after 1 year -- 5 years ................ 2,986,099 2,922,473
FHLB Stock ................................. 517,700 517,700
Mortgage-backed securities ................. 96,604 96,621
----------- -----------
$ 9,551,065 $ 9,490,787
=========== ===========
Expected maturities may differ from contractual maturities because borrowers
may have the right to call or prepay obligations without call or prepayment
penalties.
Securities with carrying values aggregating $350,000 were pledged to secure
public deposits at March 31, 1997.
5
<PAGE>
3. Loans:
Loans outstanding by classification as of March 31, 1997 are as follows:
March 31, 1997
--------------
Loans secured by real estate--
Residential properties ..................... $ 27,818,545
Nonresidential properties .................. 43,776,303
Construction loans ......................... 11,913,562
Commercial and industrial loans .............. 17,454,456
Loans to individuals ......................... 4,311,077
--------------
$105,273,943
============
As of March 31, 1997, loans accounted for on a nonaccrual basis amounted to
approximately $989,403. The interest income that would have been recorded
had these loans performed under the original contract terms was $27,245 for
the three months ended March 31, 1997. At March 31, 1997, $233,763 in loans
were past due greater than 90 days but still accruing interest.
As of March 31, 1997, the Bank's recorded investment in impaired loans,
defined as nonaccrual loans, was $989,403 and the related valuation
allowance was $114,568. This valuation allowance is included in the
allowance for possible loan losses in the accompanying statement of
condition.
As of March 31, 1997, approximately 80% of the Company's loans were secured
by real estate. As such, a substantial portion of the Company's borrowers'
ability to repay their loans is dependent on the economic environment of the
real estate industry in the Company's market area.
In the ordinary course of business, the Company may extend credit to
officers, directors or their associates. These loans are subject to the
Company's normal lending policy. An analysis of such loans, all of which are
current as to principal and interest payments, is as follows:
Balance at December 31, 1996 .................. $ 5,906,120
New Loans ..................................... 1,804,019
Repayments .................................... (1,664,000)
-----------
Balance at March 31, 1997 ..................... $ 6,046,139
===========
4. Allowance for Possible Loan Losses:
The allowance for possible loan losses is based on estimates and ultimate
losses may vary from current estimates. These estimates are reviewed
periodically and, as adjustments become known, they are reflected in
operations in the periods in which they become known.
An analysis of the change in the allowance for possible loan losses during
1997, is as follows:
March 31,
1997
--------
Balance at beginning of year .................... $886,465
Provision charged to expense .................... 58,316
Loans charged-off ............................... (2,956)
Recoveries on loans previously charge ........... 0
--------
Balance at end of period ........................ $941,825
========
6
<PAGE>
5. Shareholders' Equity:
In December 1996, the Company completed a stock offering resulting in the
issuance of 401,500 shares of common stock and, attached to each share, a
nontransferable warrant to purchase one share of common stock at an exercise
price of $15.75 at any time within two years after the offering. As of March
31, 1997, outstanding warrants totaled 401,500.
On April 29, 1994, the Company's shareholders approved the 1994 Employee
Nonqualified Stock Option Plan Employee Plan) and the 1994 Nonemployee
Director Stock Option Plan (the Director Plan).
Transaction under the plan are summarized as follows:
Exercise
Number Price
of Shares Per Share
--------- -------------
Oustanding, December 31, 1996 ............... 49,999 $ 9.72-$10.80
Options granted ............................. 37,000 11.48-$13.38
Options exercised ........................... (312) 9.72
Options expired .............................
------ -------------
Outstanding March 31, 1997 .................. 86,687 $ 9.72-$13.38
====== =============
The following table summarizes information about stock options outstanding
at March 31, 1997:
Number Remaining Number
Exercise Outstanding at Contractual Exercisable at
Price March 31, 1997 Life March 31, 1997
-------- -------------- ----------- --------------
$10.80 38,125 3.75 years 38,125
9.72 11,562 3.75 years 11,562
13.38 24,000 4.75 years 24,000
11.48 13,000 4.75 years 13,000
------ ------ ---------- ------
$11.47 86,687 4.18 years 86,687
====== ====== ========== ======
In addition, select key employees and board members are eligible to
participate in the company's Stock Award Plan. The Company granted 9,000
shares to its directors in January 1997, resulting in a charge to operations
of approximately $140,000. As of March 31, 1997, the Company has 12,929
shares reserved for issuance under the Stock Award Plan.
The Board of Directors declared a cash dividend on March 25, 1997.
Stockholders of record on April 15, 1997 received a $.05 per share cash
dividend, paid on May 5, 1997.
7
<PAGE>
6. Premises and Equipment:
The detail of premises and equipment as of March 31, 1997 is as follows:
March 31,
1997
----------
Land and building .................................... $1,337,007
Furniture, fixtures and equipment .................... 1,634,771
Leasehold improvements ............................... 1,332,292
----------
4,304,070
Less-Accumulated depreciation and amortization ....... (811,337)
----------
$3,492,733
==========
8
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
UNITY BANCORP, INC. AND SUBSIDIARY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
This financial review presents management's discussion and analysis of the
Company's financial condition and results of operations. It should be read in
conjunction with the consolidated condensed financial statements and the
accompanying notes.
FINANCIAL CONDITION AT MARCH 31, 1997
The Company's total assets increased to $187.6 million at March 31, 1997, $14.9
million, or 8.6%, above year end 1996 total assets of $172.7. Total loans
increased by 7.6%, to $104.3 million from $96.9 million at December 31, 1996.
The Company's securities portfolio, including securities held to maturity and
available for sale, remained relatively unchanged from $37.3 million at March
31, 1997, compared to $37.2 million at December 31, 1996. Shareholders' equity
increased to $18.2 million at March 31, 1997 from $18.0 million at December 31,
1996, an increase of 1.0%, or $200 thousand. The growth in the Company's total
assets, loans receivable and deposits was a result of the Company's branch
expansion, continued penetration of its existing markets, emphasis on customer
service, competitive rate structures, selective marketing and growing product
line. The increase in the Company's shareholders' equity was primarily
attributable to the Company's increase in retained earnings, issuance of stock
awards and exercise of stock options as of March 31, 1997. These increases in
total assets were funded primarily by the Company's total deposits which
increased to $168.0 million at March 31, 1997, an increase of $14.4 million, or
9.4%, over total deposits of $153.6 million at December 31, 1996. Time deposits
increased by $6.1 million, or 9.4% and interest bearing demand deposits
increased by $3.9 million, or 18.5%. The increase in time deposits was primarily
caused by the Company's promotional activities at its new locations, as well as
the Company's continued penetration of its existing markets. Deposits are
obtained primarily from the market areas which the Company serves. As of March
31, 1997 the Company did not have any brokered deposits and neither solicited
nor offered premiums for such deposits.
COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS
ENDED MARCH 31, 1997 AND 1996
NET INCOME
For the three months ended March 31, 1997, the Company earned net income of $196
thousand, or $.10 per share, compared to net income of $214 thousand, or $.17
per share, earned for the comparable period of 1996. Earnings per share were
calculated on 1,972,238 weighted average shares outstanding at March 31, 1997,
compared to 1,283,966 shares outstanding a year earlier, a 53.6% increase
totaling 688,272 shares. The changes in the components of net income included a
$571 thousand, or 46.9%, increase in net interest income after provision for
loan losses, and a $127 thousand, or 29.0% increase in non-interest income.
These items were offset by an increase in non-interest expenses of $726
thousand, or 55.7%, as the Company continued its branch expansion and increased
staff required to support and deliver its new products.
9
<PAGE>
NET INTEREST INCOME
The Company's interest income increased by $866 thousand, or 36.0%, to $3.3
million for the three months ended March 31, 1997 from $2.4 million for the
comparable period of 1996. The increase resulted from a $49.3 million increase
in the Company's average earning assets. Interest expense increased by $376
thousand, or 35.8%, to $1.4 million for the three months ended March 31, 1997
from $1.1 million for the comparable period of 1996. This increase in interest
expense was primarily attributable to the $49.0 million, or 41.1%, increase in
the Company's total deposits from $119.0 million as of March 31, 1996 to $168.0
million as of March 31, 1997 and the change in the composition of the Company's
deposits, as a greater percentage of the Company's deposits were in time
deposits, which generally pay higher rates of interest. As interest expense
increased more rapidly than interest income, the Company experienced a reduction
in its net interest margin from 4.55% for the three months ended March 31, 1996
to 4.43% for the three months ended March 31, 1997.
PROVISION FOR LOAN LOSSES
The Company's provision for loan losses decreased by $81 thousand to $58
thousand for the three months ended March 31, 1997 from $139 thousand for the
comparable period of 1996. This decrease in the provision for loan losses
reflects the $7.4 million growth in the loan portfolio for the three month per
ended March 31, 1997, compared to a $10.7 million growth for the same period
ended March 31, 1996.
NON-INTEREST INCOME
Service charges on deposits increased $78 thousand to $163 thousand for the
three months ended March 31, 1997, a 91.2% increase over $85 thousand reported
March 31, 1996. The majority of the increase is due to growth in the demand
accounts which includes higher volumes of transactions processed along with
repricing transaction fees in March 1996.
Other income increased 93%, to $131 thousand for the three month period ending
March 31, 1997 due to a larger portfolio of loan serviced and two new loan
products which accounted for an increase in loan application and appraisal fee
income. In January 1997, the Company introduced two new products to augment its
lending efforts, a full-service residential mortgage department and "Cash Flow
Manager". The mortgage department offers a variaty of traditional fixed and
variable rate products. "Cash Flow Manager" involves the purchase of accounts
receivables on a recourse basis as a means of generating both fees and interest
income to the Company and providing small businesses with a means of increasing
their cash availablity for operating needs or expansion plans.
The Company's gain on sale of loans increased by $17 thousand to $270 thousand
for the three months ended March 31, 1997 from $252 thousand for the comparable
period of 1996. This increase in the gain on sale of loans reflects the
Company's increased participation in the Small Business Administration's("SBA")
guaranteed loan program as the Company has been designated a "preferred lender"
for the states of New Jersey, Delaware, New York and Pennsylvania. Under the SBA
program, the SBA guarantees up to 90% of the principal of a qualifying loan. The
Company then sells the guaranteed portion of the loan into the secondary market.
NON-INTEREST EXPENSE
The Company's other expenses increased by $726 thousand, or 55.6%, to $2.0
million for the three months ended March 31, 1997 from $1.3 million for the
comparable period of 1996. Increases $422 thousand in salaries and employee
benefits, $135 thousand in occupancy expenses and $170 thousand in other
operating expenses. The increases in employee benefits, occupancy and other
operating expenses were primarily attributable to the company's continued
expansion, as the Company opened two new branches in July and December 1996 and
added two new loan products in January 1997. In addition, the Company completed
the move into its new headquarters building in April 1996.
10
<PAGE>
PART II -- OTHER INFORMATION
Item 1. Legal Proceedings
There are various claims and lawsuits in which the Company is periodically
involved incidental to the Bank's business. In the opinion of management, no
material loss is expected from any such pending claims or lawsuits.
Item 2. Change in Securities
Not applicable.
Item 3. Defaults Upon Senior Securities
Not applicable.
Item 4. Submission of Matters to a Vote of Security Holders
Not applicable.
Item 5. Other Information
Not applicable.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit Number 27.
Description -- Financial Data Schedule
(b) None.
11
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
UNITY BANCORP, INC.
Date: May 14, 1997 By: /s/ JAMES HYMAN
--------------------------------
James Hyman,
President and Chief
Operating Officer
12
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted from the
registrants Unaudited March 31, 1997 interim financial statements and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 2,252,999
<INT-BEARING-DEPOSITS> 20,573,084
<FED-FUNDS-SOLD> 17,550,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 9,490,787
<INVESTMENTS-CARRYING> 27,801,759
<INVESTMENTS-MARKET> 26,864,305
<LOANS> 105,273,943
<ALLOWANCE> 941,825
<TOTAL-ASSETS> 187,577,132
<DEPOSITS> 167,989,729
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,055,430
<LONG-TERM> 356,265
0
0
<COMMON> 16,977,113
<OTHER-SE> 1,198,595
<TOTAL-LIABILITIES-AND-EQUITY> 187,577,132
<INTEREST-LOAN> 2,348,710
<INTEREST-INVEST> 696,642
<INTEREST-OTHER> 227,145
<INTEREST-TOTAL> 3,272,497
<INTEREST-DEPOSIT> 1,402,797
<INTEREST-EXPENSE> 1,426,458
<INTEREST-INCOME-NET> 1,846,039
<LOAN-LOSSES> 2,956
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 2,031,146
<INCOME-PRETAX> 321,005
<INCOME-PRE-EXTRAORDINARY> 321,005
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 196,452
<EPS-PRIMARY> 0.10
<EPS-DILUTED> 0.10
<YIELD-ACTUAL> 4.43
<LOANS-NON> 989,403
<LOANS-PAST> 233,763
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 886,465
<CHARGE-OFFS> 2,956
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 941,825
<ALLOWANCE-DOMESTIC> 941,825
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
